British online fashion retailer makes bid for Nasty Gal

Los Angeles-based Nasty Gal, which filed for bankruptcy protection in November, may soon have a British owner.



Boohoo.com is bidding $20 million (£16.3 million) for the brand and its customer databases as the “stalking horse” candidate. Based in Manchester, England, Boohoo specializes in fast-fashion and targets teens and young women, the same audience as Nasty Gal.



Founded in 2006, Nasty Gal came out of the gate strong, developing a cult-like following. It entered the physical space in late 2014, and has two stores in the Los Angeles area. But the brand has struggled in recent years amid increased competition and high costs, driven by what some called over-ambitious expansion. It posted revenues of $77.1 million and a loss of $21 million in its last fiscal year.



In a release, Boohoo described Nasty Gal as a “bold and distinctive brand for fashion-forward, free-thinking young women which the board believes would complement boohoo’s own inclusive and inspirational brand.” The retailer also said the proposed acquisition has the potential to accelerate its international expansion, particularly in the United States.



“Should we be successful in acquiring Nasty Gal it would represent a fantastic opportunity to add such a well-established, global brand to the Boohoo family,” added Mahmud Kamani and Carol Kane, Boohoo's joint CEOs, in a release. “Following our recent acquisition of PrettyLittleThing.com we believe this would represent an ideal next step in inspiring an ever-growing range of young customers internationally.”